NEW YORK - Baseball salaries started to slow this year even before the economy nosedived.

The average salary in Major League Baseball this season was $2.93 million, the players' association said Thursday in its annual report. The 3.6 percent increase was the smallest since 2004, when the average declined 2.5 percent from the previous season.

The average salary had been $3.15 million on opening day, according to the commissioner's office, but the figure always declines during the season as higher-paid veterans are released and replaced by lower-paid young players.

The final average is based on the 926 players who were in the majors and on disabled lists Aug. 31, the day before rosters expanded.

The New York Yankees topped the major leagues in average salary for the 10th consecutive season. The Yankees' average of $6.86 million was down from a record $7.47 million last year.

The Chicago Cubs were second at $4.68 million, followed by the Angels ($4.56 million) and the White Sox ($4.5 million).

Report: Petty team merging with GEM

NEW YORK - Petty Enterprises is in discussions to merge its storied franchise with Gillett Evernham Motorsports, The Associated Press has learned.

Multiple people familiar with the talks told the AP on Thursday that the two teams were discussing a deal that would merge Petty's famed No. 43 Dodge with GEM to become a four-car operation. They requested anonymity because the negotiations are ongoing.

SI.com first reported that Petty Enterprises' top operation will not return in 2009. But David Zucker, CEO of Petty Enterprises, said the report was "not accurate."

Petty, the team founded by seven-time series champion Richard Petty, has no full-time sponsorship lined up for next season.